Financial FAQ August 2018

Q: Is BSC still identified as collateral on Shambhala Mountain Center’s mortgage loan, with the risk of its being sold if SMC can not meet its obligations?
A: No, BSC was released from the SMC mortgage with Wells Fargo in 2016.

Q: Who owns BSC (Dorje Dzong)?
A: Front Range Shambhala, a non-profit corporation incorporated in 2016, owns BSC and Marpa House. The directors of BSC and Marpa House, along with Eileen Malloy (secretary/treasurer) and Alex Halpern (representing Shambhala USA) constitute FRS’s officers. The bylaws designate Shambhala USA as its only voting member. This means that while SUSA plays no role in day-to-day operations, SUSA has four specific powers: 1) the power to appoint the directors of Front Range Shambhala; 2) it must approve the sale of substantially all of the assets of the corporation; 3) it must approve any amendment to the articles of incorporation; and 4) it must approve any amendment to the bylaws.

Q: Will BSC be sold in the near term?
A: As described above, SUSA has certain rights pertaining to the sale of BSC. However, while there are properties in the mandala being considered for sale so as to address the current financial situation, BSC’s Governing Council has been assured in discussions with Shambhala leadership (primarily with the Treasury Council), that the sale of BSC is not being explored. This is because while Dorje Dzong is a valuable property, it is also operationally viable, serves more than a thousand Shambhalians (formal and informal members), is a primary teaching and gathering seat in the mandala, and not only was the first city center established by the Vidyadhara, it is expected to play a critical role in how Shambhala moves forward.

Q: Is BSC liable for potential lawsuit damages?
A: According to our legal counsel, direct exposure is very remote, due to the protection of being incorporated under the Front Range Shambhala designation. Exposure for SUSA is more likely, although its risk is still quite remote due to its own structural protections.

Q: How much income does BSC transfer to SUSA?
A: Until the recent crisis, we were on course to transfer approximately 12% of net income to SUSA this year. But since this disruption, the BSC financial team (Bob Sutherland, Eileen Malloy, Peter Aucott and Melanie Klein) took action to halt additional transfers until more is known about any forthcoming financial impact.